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US crude oil futures ended higher for the sixth straight session today, lifted by economic data from the US, Japan and India that reinforced perception the global recession was abating, and as the dollar weakened to a five-month low. On the New York Mercantile Exchange, July West Texas Intermediate crude settled up $1.23, or 1.89%, at $66.31 a barrel, the highest settlement since 4 November. It traded from $64.68 to $66.47. In London, July Brent crude settled up $1.13, or 1.75%, at $65.52 a barrel. The gains added to the bullish momentum after this week's oil inventory reports showed a sharp drop in crude supplies and as Opec kept its output steady, expecting a pickup in demand. "Oil market participants' conclusion that the worst of the recession has passed and a recovery in demand must be at hand was bolstered by higher-than-expected first-quarter growth in India and a sharp jump in Japan's April industrial production," Mike Fitzpatrick, vice president at MF Global, said in a Reuters report. The US economy contracted less than initially estimated in the first quarter. The gross domestic product declined at a 5.7% annual rate, less steeply than the 6.1% rate estimated by the government last month. Market expectations were for a 5.5% contraction. In addition, the Reuters/University of Michigan Surveys of Consumers' sentiment gauge rose to 68.7 in May from 65.1 in April, the highest reading since September. The dollar fell to a five-month low against major currencies as hopes for a global recovery drove investors to buy higher-yielding currencies and riskier assets. "The dollar is getting trashed and that's supporting commodities, including oil futures...you see gold hitting a three-month high as a hedge against the dollar's weakness," Tom Knight, trader at Truman Arnold, said in a Reuters report.
Source: Upstream
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